Life is a busy road-literally speaking. For those who owns or just drives a car, the everyday scenario of the path they are daily taking affirms this statement. Indeed many people are now becoming involved in driving their cars for the convenience in transportation. And as mandated by law, everyone who is driving a car whether he or she owns it or not must have car insurance.
Though availing of auto insurance is now made easier than how it was before as a tedious and overwhelming process to be accomplished, not everyone submits to this mandate by the government. The problem now lies on the financial constraint posted by today’s economy.
What makes these car premiums cost too much?
Several factors could actually influence the rate that companies are giving to its customers. One of which is the driver’s profile. Being a male or a female influences the policy rate. Since it is statistically proven fact that men tend to be involved in car accidents than women, their rate is thus higher than the feminine party.
In this scenario, age does matter as well. Age is said to be another factor that contributes to the different rates offered by the auto companies. Teenagers and college students are found by researches to be more prone to accidents on the road. Due to their brain’s biological make-up, they are pre-defined by auto insurance companies to be risky and being considered as risky, companies give sky-high premium rates to them.
The vehicle type is also a matter. The rates are influenced by the specific type of car one is driving. A sports car or a muscle car would definitely be in need of expensive premium rates. Thus If one is looking for a lower rate for a car policy then it is wise to choose inexpensive cars to be insured with.
The place where one lives is another factor that may influence the car insurance rates. The guiding laws with regards to the rates are state-specific so one must not be surprised to find out that even the same company would offer different rates in different places.
The speed of the car is also a variable considered by companies in deciding the policy price. The speed and the rate are directly proportional which entails that the faster the car runs, the higher the price a premium might cost.
The rates of auto policies are moreover increasing as today’s trend would suggest and additional factors are the reasons behind this further rate increase.
Among the factors are the unattended valuables. It is like a common notion that one must watch over his or her valuables especially in public places. However not everyone is guided by this notion and yes this can actually influence the rate of auto rate since unattended valuables in cars are very inviting to theft to have your car window smashed. For this reason then leaving your valuables unattended is a variable that may increase your rate some more.
In addition to this, uninsured drivers may add burden to insured ones. This is due to the threat this uninsured drivers are posting whenever they hit the road. Uninsured drivers when caught in an accident may not be able to pay for all the damages an accident may bring. And for some reasons the risk was passed on to the insured ones.